The unsustainable debt of usa is just mind blowing! And its study is quite inane as well as fascinating! And those people like us who analyze are called pure dump, having too much time to do nothing, dystopic and what not! let us dig some numbers! --The debt is standing at staggering 18 tril( that is 18000 bil) -- Interest rates are all time low despite that they are paying 350 bil per annum. --Interest rate cannot increase for nearly a decade at least till 2020! --By that time debt would stand at 22 tril and even at a modest rate of 4% it would near a trillion in interest payment alone( is it sustainable?) ---There is no evidence of any western economy growing above 3% to justify their mountain of debt! --- There is no hope any cut in military with continues menance from outside! They are slated to raise to a tril bucks if it not already is! ---with population growing old the entitlement also rise! --- The stock market is growing higher as long as interest rates are zero. So expect dow to be at 25 to 30k in 2020! -- If I and you have debt, how can we lend each other?( only wall street knows this trick! Invent a public ponzi scheme for sure!). -- So there wont be any cut in expenses, there is never enough surplus, interest cannot rise and debt cannot fall! --It remains to be seen how long this un-precedented party can continue! --The school taught everything but not to do above and the system had make a mockery of scholars and pundits! --And some folks who are proscecuted in inside trading were educated in elite of elite schools like harvard tells you a story( to be a cheat you need knowledge to cheat( this is an oscar line for sure) --- Due to the above for good or bad china is the only nation which will overtake america after the mighty japs did it 3 decades ago! But china is so huge it would consume half the world resources when that happens! Their GDP is already 15 plus tril( will be at 22 tril with 7% growth, that is quite something!) ---?
Posted on: Tue, 16 Sep 2014 18:38:47 +0000